With this, the total number of companies getting Sebi's nod to float an initial public offer (IPO) has reached 44 so far this year.

Vectus Industries and Milltec Machinery had filed their respective draft papers with markets regulator in June and July, seeking its approval to launch initial share-sale.

As per the latest update available with the Securities and Exchange Board of India (Sebi), Vectus Industries has obtained the regulator's "observations" on August 31, while Milltec Machinery has received it on August 30.

Sebi's "Observations" are necessary for any company to launch public issues, including initial public offer (IPO), follow-on public offer (FPO) and rights issue.

According to merchant banking sources, the both IPO is expected to fetch Rs 500 crore each.

Going by the draft papers, Vectus Industries' IPO comprises fresh issue of shares worth Rs 85 crore, besides an offer for sale of up to 38,98,575 equity shares by the existing shareholders.

Private equity firm Latinia Ltd will sell 28,46,829 equity shares through this IPO, while 6,57,341 equity shares will be offered by Ashish Baheti and up to 3,94,405 equity shares by Atul Ladha.

The IPO of Milltec Machinery will see sale of up to 37,51,499 equity shares, amounting to 37.5 per cent stake in the company, by Renuka Ramnath-led private equity firm Multiples Alternate Asset Management (Multiples PE) and promoters.

Multiples PE will sell 22.5 per cent, while promoter will divest 15 per cent holding in the company.

Motilal Oswal Investment Advisors and IIFL Holdings will manage the company's public issue.